TRADE IDEA: RSX AUG 17TH 17 LONG/MAY 25TH 21.5 SHORT PUT
Updated
Fading the down move here with a put diagonal ... .
Metrics:
Max Loss on Setup: 350/contract
Max Profit on Setup: 100/contract
Break Even: 20.50
Notes: The natural alternatives would be to sell the 30 delta short put or go synthetic covered call via a 70 delta shortie ... . I'm looking for a 3.50 fill, but the setup may need some adjustment at NY open, since after hours quotes are showing a wide bid/ask ... .
Metrics:
Max Loss on Setup: 350/contract
Max Profit on Setup: 100/contract
Break Even: 20.50
Notes: The natural alternatives would be to sell the 30 delta short put or go synthetic covered call via a 70 delta shortie ... . I'm looking for a 3.50 fill, but the setup may need some adjustment at NY open, since after hours quotes are showing a wide bid/ask ... .
Note
Ooops. This is a call diagonal, not a put diagonal. (Senior moment).Note
The liquidity and expiry availability in this underlying turned out to be "not that hot" when I looked at it during the NY session. Currently, for example, there is no June monthly; I'd like a September, but there isn't one; I'd have to go out to November for the back month, and the bid/ask ... ewwwww. The Nov 16th 18 long/June 1st 20.5 short is bid 0.00/ask .37/mid .19 ... . Looked good on paper.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.